Question 3: Standards for Sulfur Dioxide Emissions (4 points total) The following graph shows the marginal benefits (MB)

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Question 3 Standards For Sulfur Dioxide Emissions 4 Points Total The Following Graph Shows The Marginal Benefits Mb 1 (114.44 KiB) Viewed 21 times

Question 3: Standards for Sulfur Dioxide Emissions (4 points total) The following graph shows the marginal benefits (MB) and the marginal abatement costs (MAC) associated with cleaning up air pollution caused by sulfur dioxide (SO2). $ MAC Z T S Q R w MB A Az A, A Abatement a. What level of pollution abatement in the graph would be the optimal level? (0.5 points) b. What would be the total cost of cleaning up the air completely (to Ad)? (1 point) C. What would the total benefit of cleaning the air to level A3? (1 point) d. Suppose a policy maker originally required abatement by firms to level Az, but then decides to make firms cleanup to level A3. Would this change in policy result in larger net benefits for society? Circle your answer below. (0.5 points) YES or NO e. Explain your answer above. Justify your answer by referring to the lettered areas of the graph that provide validation for your response. (1 point)